Term loan
A fixed amount repaid over a fixed period. The calculator above is built for this shape. Best for a purchase you can name, such as a vehicle or a shop fit-out.
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Free business loan calculator
Enter the amount, the term, and the rate. See your monthly payment, total interest, and payoff time at once.
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An estimate from the figures you enter, not a loan offer. Your lender may use a different day count, charge fees, or quote a flat rate.
Work out your repayment in four steps.
Three numbers give you the payment. The fourth shows what paying extra saves.
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Enter the loan amount
Use the amount you are borrowing. If the lender deducts a fee before paying out, you still repay the full amount, so enter the full amount here.
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Set the term
Enter how many years you have to repay. A longer term lowers the monthly payment and raises the total interest, and the calculator shows both.
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Enter the interest rate
Use the annual rate the lender quotes. Drag the slider to compare a range, or type an exact figure such as 8.25.
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Try an extra monthly payment
Open Advanced and add anything you could pay on top. The result shows how many months it removes from the term and how much interest it saves.
Which business loan fits.
Six ways to borrow, and what each one is built for.
Working capital loan
A short-term loan that covers the gap between paying suppliers and being paid. Usually under two years, and priced higher than a long-term loan.
Business line of credit
A limit you draw from and repay as you need it. You pay interest only on what you have drawn, so a calculator built for fixed payments only estimates it.
Equipment finance
The equipment itself is the security, which usually means a lower rate. The term is set against the life of the machine.
Invoice finance
An advance against invoices your customers have not paid yet. Priced as a fee per invoice rather than an annual rate, so compare it on total cost.
Merchant cash advance
An advance repaid as a share of daily card takings. Quoted as a factor rather than a rate, and it is almost always the most expensive money on this list.
What makes a loan cost more than the rate.
The quoted rate is one part of the price. These are the others.
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Processing or origination fee
Charged up front, often one to three percent of the amount. It is usually deducted from the payout, so you receive less than you repay.
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Flat rate instead of reducing balance
A flat rate charges interest on the original amount for the whole term, even as you pay it down. A 10% flat rate costs close to a 18% reducing-balance rate.
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The length of the term
A longer term makes each payment smaller and the total larger. Move the term in the calculator above and watch the total interest rather than the payment.
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Prepayment penalty
Some agreements charge for clearing the loan early. Check for one before you plan around an extra monthly payment.
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Insurance sold alongside
Credit insurance is sometimes added to the amount borrowed, which means you pay interest on the premium too.
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Late payment charges
A missed payment adds a fee and interest on the arrears. It can also affect the rate you are offered next time.
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Security and a personal guarantee
An unsecured loan costs more because the lender carries more risk. A personal guarantee lowers the rate by moving that risk to you.
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The gap between the rate and the APR
The APR folds fees into a single annual figure, so it is the number to compare two offers on. The rate alone is not.
Business loan terms.
Six words that turn up in every loan agreement, and what each one means.
- Principal
- The amount you borrowed, before any interest. It is what the repayment pays down.
- Interest
- What the lender charges for the money, calculated on the balance still owed.
- Amortisation
- Repaying in equal instalments where each one covers the interest first and the balance second.
- EMI
- Equated monthly instalment. The same figure this calculator reports as the monthly payment.
- APR
- The annual cost including fees, expressed as one percentage. The figure to compare offers on.
- Collateral
- An asset the lender can take if the loan is not repaid. Offering it usually lowers the rate.
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See how Store.link worksBusiness loan calculator questions.
How is the monthly payment calculated?
It uses the standard amortisation formula, with the annual rate divided by twelve and charged on the balance each month. The final payment is adjusted to clear the balance exactly, which is what a lender does.
Is this the same as an EMI calculator?
Yes. EMI means equated monthly instalment, which is the monthly payment this tool reports.
What is a good interest rate for a business loan?
It depends on the country, the lender, the security you offer, and how long you have been trading. Compare offers on the APR rather than the rate, because the APR includes fees.
Does a longer term cost more?
Almost always. A longer term lowers each payment and raises the total interest. Change the term in the calculator and watch the total interest rather than the monthly figure.
What does paying extra each month do?
Every extra amount comes off the balance, so there is less to charge interest on. The calculator shows how many months it removes and how much interest it saves.
Does the calculator include fees?
No. It reports interest on the amount and rate you enter. A processing fee, insurance, or a prepayment penalty is on top, and those are what the APR exists to capture.
What is the difference between the interest rate and the APR?
The interest rate is the charge on the balance. The APR adds the fees and expresses the whole cost as one annual percentage, so it is the fair way to compare two offers.
What is a flat rate?
A flat rate charges interest on the original amount for the whole term, even after you have paid most of it down. It costs far more than the same number quoted on a reducing balance.
Is this a loan offer?
No. It is an estimate from figures you typed, with no application, no credit check, and no lender involved. Your own agreement is the only figure that binds.
Are my numbers saved or uploaded?
Nothing is uploaded. Every figure stays in your browser on this device.
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